An updated presentation by Candace Brown for the Water Supply Advisory Committee Ideas Convention. Proposal Summary: I propose sustainable clean water through a reliable clean energy source--ocean energy.

1. Water – Energy Nexus
Sustainable Water Source
through Ocean Energy
Candace Brown
Santa Cruz, California Resident
September 2014 and October 2014 Update

2. Three messages in my presentation
1. Any water sourcing solution has an energy
cost and often the cost is overlooked or at
least underestimated.
2. What is Ocean Energy and unique solutions
are sprouting up in small communities around
the world?
3. Lower cost sustainable water source with
minimal environmental impact – Consolidated
Wave energy and Desalination solution in
Perth, Australia.

3. 19%: The Great Water-Power Wake-Up
Call
 Ever wonder how much juice it takes to move water?
 A few years back, number crunchers at the California Energy Commission tried to add up
how much electrical power (and other forms of energy) goes into using water in California.
The bottom line number they came up with: 19%. That is, nearly a fifth of all the power
generated in California — as well as huge quantities of natural gas and diesel fuel
consumed in the state — goes into water-related uses. You might call that report,
entitled California’s Water-Energy Relationship, as The Great Wake-Up Call. The idea that
so much power could go into this one vital activity—moving and treating and using
water—is both stunning and captivating. And it has spurred both state agencies and water
and power utilities into action.
 22% of that number is moving water – water pumping, extraction, transfer and distribution –
10,300 GWh/California and another 4% - Wastewater Treatment – 2,000 GWh
 The logic for that is pretty straightforward: Water is heavy (62.4 pounds per cubic foot) and
tends to resist moving uphill. It takes a lot of energy to move water, but also to treat it, and
then treat it again after we use it.
 The remainder of the 19% - 15% Farm Use – Irrigation, crops, livestock – 7,400 GWh, 28%
Household/Residential – Heating water, washing clothes and dishes “after the meter” –
13,500 GWh, 18% Commercial – Cooking, heating and cooling – 8,700 GWh, 13% Industrial
– Manufacturing sectors, construction, mining, airport usage – 6,000 GWh
 http://blogs.kqed.org/climatewatch/2012/06/10/19-percent-californias-great-water-power-
wake-up-call/

4. Energy Makes Up Half of Desalination Plant
Costs: Study – Bloomberg – Apr 30, 2013
• Energy is the largest single expense for desalination plants, accounting for as much as
half of the costs to make drinking water from the sea, according to a report.
• Desalination plants on average use about 15,000 kilowatt- hours of power for every
million gallons of fresh water that’s produced, the Pacific Institute said today in a report.
In comparison, wastewater reuse draws as much as 8,300 kilowatt- hours of power for the
same volume and importing a similar amount of water into Southern California requires
as much as 14,000 kilowatt-hours of electricity, it said.
• A 25 percent increase in energy expenses would raise the cost of producing water by
about 9 percent and 15 percent at reverse osmosis and thermal desalination plants
respectively, according to the report. Electricity prices in California are projected to rise
by about 27 percent from 2008 to 2020 in inflation-adjusted dollars as power grid
infrastructure is maintained or replaced, capacity is added and more renewable energy
is integrated.
• http://www.bloomberg.com/news/2013-05-01/energy-makes-up-half-of-desalination-plant-
costs-study.html

5. Santa Cruz Water System Energy Use
Now…..
The City’s water system uses approximately 4,200 megawatt-hours per year
(MWh/yr) of electrical energy based on both its use of surface and groundwater
sources. The District’s water system uses approximately 2,600 MWh/yr of electrical
energy based on its use of groundwater sources (see Appendix O, Summary of
Energy and GHG Reduction Approach).
Page 5 of http://www.scwd2desal.org/documents/Draft_EIR/5-9_Utilities_DEIR.pdf

6. ….and Desalination Proposed
Operation Conditions - Energy (MWh/yr) Half Capacity - 6,800 Full Capacity 13,700
For typical non-drought year operations, the annual energy use of the proposed scwd2
Desalination Facility of 6,800 MWh per year is equivalent to any one of the following
examples:
The annual energy used by a mid-sized hospital such as Dominican Hospital.
The annual energy use (electric and gas) for approximately 370 Santa Cruz area
households.
Page 14 and 15 of
http://www.scwd2desal.org/documents/WhitePapers_Fact_Sheets/scwd2_EnergyPaper_04_0
8_11.pdf

7. Three messages in my presentation
1. Any water sourcing solution has an energy
cost and often the cost is overlooked or at
least underestimated.
2. What is Ocean Energy and unique solutions
are sprouting up in small communities around
the world?
3. Lower cost sustainable water source with
minimal environmental impact – Consolidated
Wave energy and Desalination solution in
Perth, Australia.

8. What is Ocean Power – Part I?
Ocean power includes technologies that tap the sea’s energy, not only that of
crashing waves but also the motion of tides and even the heat stored in the
oceans, which are the world’s largest solar collectors. Ocean power, then,
includes three types: wave power, tidal power and thermal energy conversion.
1. Wave Energy - The most obvious form of ocean energy is the power of waves.
For energy conversion, wave power can be captured on or near shore as well as
offshore. Offshore systems use the motion of the waves either to create an
electrical charge with a pump and a floating bobber or buoy, or to operate
hydraulic pumps within the joints of a floating device resembling a string of
sausages. The pressurized fluid from the pumps powers a turbine.6
Onshore techniques include the pendulor, the tapchan and the oscillating water
column. The pendulor uses a flap swung back and forth by waves to power a
pump and generator. The tapchan is a tapered channel that forces waves
higher and thus feeds water into a reservoir above sea level; this water then is
used to turn a turbine, as with conventional hydroelectric generation. A related
wave device pressurizes seawater to send it to an elevated onshore storage tank
for release through a turbine; this device was tested in the Gulf of Mexico before
“seeking actual ocean environments” for in-situ testing.7 And the partially
submerged oscillating water column channels waves into an opening to
compress the air column above the water, forcing it through a turbine; as the
wave retreats, the falling water pulls the air through the turbine once again.

9. What is Ocean Power – Part II?
2. Tidal Energy - To convert tidal power into electricity, a power plant site requires a
large volume of fast-moving water. This can be found either in locations with a
wide swing in tidal heights or with tidal flows that pass through a narrow channel.
The former is often called “traditional” tidal power, while the latter is called “tidal
stream” power.8
Forty years ago, tidal power plant design took its cue from the established
hydroelectric industry. The world’s four “traditional” tidal power plants, in France,
Russia, Canada and China, use a “barrage” or dam that functions much like an
onshore dam but requires a tidal inlet or estuary. The tide comes in and builds up a
difference in water height, and then water is released through gates into turbines.9
Tidal stream power is featured in two different designs: the tidal fence (underwater
turnstiles spanning a channel or narrow strait) and the tidal turbine.
Of the three types of tidal power systems – “traditional,” tidal fence and tidal
turbine – the tidal turbine is simplest, and the one generating the most research at
present. These are essentially underwater wind turbines turned by the tidal currents.
Even though ocean currents are slower than wind speeds (currents of 4 to 5.5 mph
are optimal for tidal turbines), the density of water is almost 1,000 times that of air,
which translates to a higher energy yield. The turbines also have little impact on the
environment; the other types can have problems with silt buildup and can interfere
with sea life migration because they obstruct a channel.10

10. What is Ocean Power – Part III?
3. Ocean Thermal Energy Conversion – Finally, ocean thermal energy conversion (OTEC) is
the least accessible form of ocean power, and perhaps the least useful for the U.S. To
work, OTC needs an optimal temperature difference between warm water on the
surface and colder water below of about 36 degree F—a range found only in tropical
coastal areas near the equator. In the U.S., OCT research and testing is taking place in
Hawaii. The cold water is brought to the surface by a deeply submerged intake pipe.
Transportation and Transmission of the 3 forms of Ocean Energy – Ocean energy does not
involve or require fuel transportation or storage. As with other alternative methods of
generating electricity, however, ocean energy processes need transmission capacity to
make them a viable power source. Electricity generated offshore by OTC and deep-water
wave systems typically would send the power through an underwater cable to the
electrical grid onshore. And all transmission lines can involve issues of access, rights of
way and property ownership.
Source for What is Ocean Power Part I, II and III slides:
http://www.window.state.tx.us/specialrpt/energy/renewable/ocean.php
State of Texas – Texas Comptroller of Public Accounts
NOTE: The Carnegie Wave Energy Perth Wave Energy Project (PWEP) is carrying high-pressure
water to shore and not electricity to generate electricity with an off-the-shelf
hydro-electric turbine onshore. http://arena.gov.au/project/perth-wave-energy-project/

11. Ocean Energy – New Technologies and many Global Projects – Part I
YouTube – 200 video Playlist on popular Wave power & Energy videos – source of many of the videos below.
https://www.youtube.com/playlist?list=PLNrNZRro6Qu3i3GHerUgvWcqAwYQoFmKU
“Even though wave energy is at the very beginning of the manufacturing learning curve, capital costs per net
kw are already down in the range of wind energy devices, and below solar.”
http://www.oceanenergycouncil.com/ocean-energy/wave-energy/
Carnegie CETO commercialization as the largest Wave Farm in Perth - 1 megawatt per buoy = 500 homes
https://www.youtube.com/watch?v=b0Jbg1GVcUY&list=PLNrNZRro6Qu3i3GHerUgvWcqAwYQoFmKU&index=69
Perth Wave Energy Project Animation – 2013 – small building footprint and a few large buoys a few kilometers
out to sea. It consolidate the desalination process with the force of water to convert energy – very efficient.
https://www.youtube.com/watch?v=Ki5AbYro4hA&index=10&list=PLNrNZRro6Qu3i3GHerUgvWcqAwYQoFmKU
Oregon State wave-energy buoy with support from National Science Foundation – 11th one now –
experimenting with buoys that marine life can navigate around….acoustic avoidance systems....80-90% of time
energy – twice wind and solar – projects that ocean energy is up to 6% of US energy in the future.
https://www.youtube.com/watch?v=1LJpBnxzG30&list=PLNrNZRro6Qu3i3GHerUgvWcqAwYQoFmKU&index=107
SRI International’s Wave-Powered Generators for Clean Energy – “Artificial Muscle – Polymer that when
stretched can convert energy from mechanical to electrical – great enhancement for buoy systems. 100 times
more efficient than a coil system to capture energy.
https://www.youtube.com/watch?v=ePOB8pUXhBg&list=PLNrNZRro6Qu3i3GHerUgvWcqAwYQoFmKU&index=47
Queen’s University Belfast, Ire. – Comparison of Direct (eg., CETO) and Indirect Methods Wave-powered Desal
http://www.spok.dk/seminar/An%20autonomous%20wave-powered%20desalination%20system_21.pdf
Stanford – Wave Energy Conversion - Following stakeholder consultations and scenario development, InVEST
can est. how the current location, amount, delivery, and value of services are likely to change in the future.
http://www.naturalcapitalproject.org/pubs/marine/MarineInVEST_Apr2010.pdf

12. Ocean Energy – New technologies and many Global Projects –
Part II
UC Berkeley - Wave energy – 1 square meter of the underwater carpet designed by UC Berkeley provides energy
for two households – 10 meter carpet can provide the same amount of energy as a soccer field of solar panels
as wave action provides very dense energy. Ocean waves and tidal currents are one of the most untapped and
important, clean, cheap, rich, and reliable sources of renewable energy on the earth. UC Berkeley professor
Reza Alam and his team at the TAF Lab (Theoretical & Applied Fluid Dynamics Laboratory) have developed a
"wave carpet" which can extract the energy of ocean waves and turn it into electricity and freshwater for
households and cities. Series: "UC Berkeley News" [Science] [Show ID: 27834]
https://www.youtube.com/watch?v=gZFM0ghuwZs
Scotland – Air flow from wave power station developed by Voith Hydro (www.voith.com) – Passive system that
captures airflow from even low-wave motion in a low-profile coastal structure. They claim that 40% of all global
energy could come from ocean energy (that amounts to 700-800 nuclear power plants).
https://www.youtube.com/watch?v=gcStpg3i5V8
New Zealand – Current conversion – tidal and wave energy – talks about analogy to wind but current is slower
and more energy with water with resistance. Working with a number of partners – Experimenting with Northern
Ireland technology, SeaGen from Marine Current Turbines, Ltd.
https://www.youtube.com/watch?v=BxXRejkyeRU&list=PLNrNZRro6Qu3i3GHerUgvWcqAwYQoFmKU&index=110
Spain – Atlantic - Offshore Desalination Using Wave Energy by Álvaro Serna and Fernando Tadeo
Departamento de Ingeniería de Sistemas y Automática, Universidad de Valladolid, Calle Doctor Mergelina s/n,
47011 Valladolid, Spain Received 27 March 2013; Revised 30 May 2013; Accepted 23 June 2013
http://www.hindawi.com/journals/ame/2013/539857/
Wales – Tidal Barrage – no seafloor drilling – 10 MW of electricity for 10,000 homes – August 7, 2014 article
http://thinkprogress.org/climate/2014/08/07/3468583/major-milestone-tidal-power-wales/

13. Ocean Energy – New Technologies and many Global Projects –
Part III
Portugal - Wave grid of 3 long steel 4-piece sectional devices (142M long x 3.5M diameter) that are semi-submerged
3 miles off coast of Aqucadoura. They generate 2.25 MW – enough electricity for 1,500 homes.
https://www.youtube.com/watch?v=fet4bCYvmLw
Brazil private/government initiative – first wave energy system in Latin America – external arms that sit on the
surface near shore or wharf or breakwater edge.
https://www.youtube.com/watch?v=GA_UgVm9bvU
Northern Europe - Wave Star working system in the North sea and Danish fjords since 2006. Note they are
pads on standing barges or side of larger vessels.
https://www.youtube.com/watch?v=Fu5AK_a9KN0
Norwegian company, Pontoon Power AS, formed in 2010, that have designed a very scalable Pontoon
Power Converter (PPC) farm that can be in very remote locations out to sea.
https://www.youtube.com/watch?v=vS-s9QzPGDg
Kiev Eco Wave Power – small scale wave energy generation system – different shapes for different
environments and lyrics of energy-independence song.
https://www.youtube.com/watch?v=VtTZ855O5ds
Singapore inventor outlines the many forms of energy converters using fluid pumps for waves or flowing
currents – water/air piston pumps up to a water storage unit, T-Bar (paddle-like) piston pump, Actuator bar
piston pump, Chain piston pump, Floating oscillating pontoon & piston pump (or with addition of paddle),
Oscillating actuator T-bar and piston pump, Horizontal rotary wheel & piston pump (or Vertical rotary wheel),
Axial flow turbine and piston pump, Curve rack and piston pump, mobile piston pump container system,
ocean farm piston pump system (on a single platform)
https://www.youtube.com/watch?v=fYfs-qYGzvs

14. Three messages in my presentation
1. Any water sourcing solution has an energy
cost and often the cost is overlooked or at
least underestimated.
2. What is Ocean Energy and unique solutions
are sprouting up in small communities around
the world?
3. Lower cost sustainable water source with
minimal environmental impact – Consolidated
Wave energy and Desalination solution in
Perth, Australia.

15. Wave Power Levels Global Distribution
http://www.window.state.tx.us/specialrpt/energy
/renewable/ocean.php
Santa Cruz
Perth

16. Perth – CETO Technology – Only Fully
Submerged Wave Energy & Desal Solution
About Carnegie Wave Energy Limited is an Australian, ASX-listed (ASX:CWE) wave energy technology
developer. Carnegie is the 100% owner & developer of the CETO Wave Energy Technology intellectual property.
About CETO CETO Power & Water
http://carnegiewave.com/files/asx-announcements/2014/140212_DPP%20Update.pdf
The CETO system is different from other wave energy devices as it operates under water where it is safer from
large storms and invisible from the shore. Fully submerged buoys are tethered to seabed pump units. These
buoys move with the motion of the passing waves and drive the pumps. The pumps pressurize water which is
delivered onshore via a subsea pipe.
Onshore, high-pressure water is used to drive hydroelectric turbines, generating zero-emission electricity.
The high-pressure water can also be used to supply a reverse osmosis desalination plant, replacing or reducing
reliance on greenhouse gas-emitting, electrically-driven pumps usually required for such plants.
The technology is also capable of generating power offshore should the specific characteristics of a
project site require it. http://carnegiewave.com/index.php?url=/ceto/ceto-freshwater
CETO technology characteristics include:
• Converts ocean wave energy into zero-emission electricity and desalinated water.
• Environmentally friendly, has minimal visual impact and attracts marine life.
• Fully-submerged in deep water, away from breaking waves and beachgoers, and unaffected by storms.
Desalination Project
Carnegie’s CETO wave energy technology is the only fully submerged wave energy technology capable of
producing directly desalinated water. A CETO desalination plant is capable of significantly minimizing energy
losses when compared with traditional desalination plants. The below is a comparison of energy losses between
a traditional coal powered desalination plant versus a CETO desalination plant.
http://carnegiewave.com/index.php?url=/projects/desalination

17. Carnegie CETO Freshwater Schematic
Image source: http://carnegiewave.com/index.php?url=/ceto/what-is-ceto
YouTube Animation: https://www.youtube.com/watch?v=Ki5AbYro4hA –
Gives you a very real sense of the elegance of the solution.

18. Perth Wave Energy & Desalination Costs
Perth Wave Energy Project (‘PWEP’) Fact File
• Upon completion, PWEP will be the first commercial-scale CETO grid and desalinated
water connected wave energy project.
• The Perth Wave Energy Project is supported by $13.1m in Australian Government funding
through the Australian Renewable Energy Agency’s Emerging Renewables Program.
• PWEP is supported by $7.3 million from the Government of Western Australia's Low Emissions
Energy Development (LEED) Fund. This is part of a larger $10 million LEED grant, awarded to
Carnegie by the Western Australian Government, to support the development of the CETO
technology from concept through to completion of PWEP.
• The Desalination Pilot is supported by a $1.27m AusIndustry grant from the Clean
Technology Innovation Program.
• Utilizing Carnegie’s fully submerged and commercial proven CETO wave energy device.
• Providing clean, renewable energy and potable desalinated water to Australia’s largest
naval base,
HMAS Stirling, on Garden Island in Western Australia.
For more information: http://carnegiewave.com/files/asx-announcements/
2014/140212_DPP%20Update.pdf
Dr Michael Ottaviano, CEO & Managing Director
Carnegie Wave Energy Limited +61 8 9486 4466
enquiries@carnegiewave.com
Website: www.carnegiewave.com

19. Effectiveness – Supply-Storage Inc./Qty
and Demand Dec./Qty
What is CETO - Named after a Greek sea goddess, CETO offers the potential to revolutionize power and water
production globally. CETO harnesses the enormous renewable energy present in our ocean's waves and converts it
into two of the most valuable commodities underpinning the sustainable growth of the planet; zero-emission electricity
and zero-emission desalinated water.
Unlike other wave energy systems currently under development around the world, the CETO wave power converter is
the first unit to be fully-submerged and to produce high pressure water from the power of waves.
By delivering high pressure water ashore, the technology allows either zero-emission electricity to be produced (similar
to hydroelectricity) or zero-emission freshwater (utilizing standard reverse osmosis desalination technology). The system
can also be used for co-production of zero-emission electricity and freshwater.
Advantages of CETO
Simple - pumping system, electrical generation onshore, manageable size
Developed & Proven - over 10 years in-ocean at 1/3rd & commercial scale
Flexible - operates in variety of water depths, swell directions, tides & seafloor conditions
No Visual Impact - fully submerged
Storm Survivability - fully submerged & energy relief system
Security - provides emissions free sustainable energy and water security to countries & islands
Scalable - modular array design
Minimal - environmental impact, co-exists with marine life.
Desalination - zero-emission freshwater & co-production possible
The $31.2m Project is supported by Australian Federal Government funding through the Emerging Renewables
Program, and the Western Australian State Government through the Low Emissions Energy Development fund. The
Australian Department of Defense will buy the electricity generated by the Project to supply HMAS Stirling.
http://carnegiewave.com/index.php?url=/ceto/what-is-ceto

20. Practicability – Est. Costs (Capital & Oper. Exps),
Regulatory & Land-use Considerations & Acq., Proven/existing
Implementations or examples
Carnegie Wave Energy Limited CETO technology characteristics include:
• Converts ocean wave energy into zero-emission electricity and desalinated water.
• Environmentally friendly, has minimal visual impact and attracts marine life.
• Fully-submerged in deep water, away from breaking waves and beachgoers, and unaffected by storms.
Perth Wave Energy Project (‘PWEP’) is Australia’s first commercial-scale CETO grid-connected wave energy project.
• The project is supported by $13.1m in Australian Government funding through the Australian Renewable Energy Agency’s Emerging
Renewables Program.
• PWEP is supported by $7.3 million from the Government of Western Australia's Low Emissions Energy Development (LEED) Fund.
This is part of a larger $10 million LEED grant, awarded to Carnegie by the Western Australian Government, to support the
development of the CETO technology from concept through to completion of PWEP.
• Utilizing Carnegie’s fully submerged and commercial proven CETO wave energy device.
• Providing clean, renewable energy to Australia’s largest naval base, HMAS Stirling, on Garden Island in Western Australia.
The CETO desalination pilot will be co-located with Carnegie's Perth Wave Energy Project on Garden Island, integrating off-the-shelf
reverse osmosis desalination technology with the Perth Project’s infrastructure.
• Key tasks ahead of construction of the desalination pilot plant include completing detailed design, securing environmental
approvals and the potential integration of the construction and commissioning of the desalination pilot into the delivery of Perth
Wave Energy Project.
• The latter will be cost effective as it will allow both projects to be constructed at the same time and then commissioned
sequentially.
• The desalination pilot project is supported by $1.27m in Federal Government grant funding from AusIndustry’s Clean Technology
Innovation Program.
• Providing potable desalinated water.
• http://carnegiewave.com/files/asx-announcements/2014/140212_DPP%20Update.pdf

21. Environmental & Community Impact – Part I
Greenhouse gases & energy consumption or production,
Species impacts(sensitive/threatened/endangered),
Environment benefits, Community/Economic impacts & benefits
Legislative Framework - The Project requires a range of environmental approvals from the Australian Government, including Department of
Defense (Defense), and the Government of Western Australia. Garden Island is Commonwealth owned and an active defense base. As such
environmental management and approvals on Garden Island are managed by Defense, in accordance with the Environment Protection and
Biodiversity Conservation Act 1999 (EPBC Act) and Defense policy.
Offshore of Garden Island, the primary environmental State legislation under which approvals are required are the Environmental Protection
Act 1986 (EP Act), the Navigable Waters Regulations 1958 and the Wildlife Conservation Act 1950. Aerial view of the Perth Wave Energy
Project, Western Australia© Copyright Carnegie Wave Energy Limited 2012
Environmental Assessment
Carnegie has undertaken an extensive environmental impact assessment (EIA) of all elements of the Project using in-house and external
environmental experts. Separate marine and terrestrial environmental management plans (EMP) have been completed, in consultation with
key stakeholders, to support the Project and applications for regulatory approvals. The EMP’s describe the Project, the receiving environment,
identify and assess potential impacts and identify mitigation and management strategies to protect the environment.
Terrestrial Environment - Garden Island has significant natural landscapes and high natural heritage values for its scientific diversity of
important, and also rare, flora and fauna. The island is a significant habitat for several species that have declined in the Perth metropolitan
area, including the brush bronze wing, lined skink, tiger snake, carpet python and King’s skink. It supports 30 water bird species and 14 species
of terrestrial reptiles, and a population of Tammar wallabies have all been isolated from mainland populations for some 6000–7000 years.
Cultural values arise from the archaeology and history associated with the first settlement in Western Australia at Cliff Point by Captain James
Stirling in 1829, World War II coastal defenses, the development of HMAS Stirling Naval Base and recreational users. Indigenous mythological
beliefs associated with sites on the island also make a contribution to the heritage values.

22. Environmental & Community Impact – Part II
Greenhouse gases & energy consumption or production,
Species impacts(sensitive/threatened/endangered),
Environment benefits, Community/Economic impacts & benefits
Marine Environment - The marine flora and fauna of the region is typically comprised of a mixture of temperate and tropical species. Several
marine mammal species are known to frequent the waters off Garden Island, including whales, dolphins and sea lions. Various birds, reptiles,
sharks, rays, and other fish are also commonly found in the area. The seabed is primarily coarse sandy seabed with occasional macro algal-dominated
limestone reef. The beach is backed by a dune system consisting of a narrow, steep and generally well vegetated fore-dune. The
waters surrounding Garden Island are used predominantly for recreational purposes such as cruising, fishing, kayaking, surfing and diving
activities.
Risk Assessment and Management - Assessment of potential environmental impacts resulting from the Project, together with mitigation and
management measures to minimize harm to the environment, were reviewed by Carnegie and specialist environmental consultants in
consultation with the EPA, Defense and other key stakeholders.
Overall, the Project has been assessed as having relatively low potential risk to the wider environment, with no high or unacceptable risks or
potential impacts remaining after management. The Marine and Terrestrial Environmental Management Plans identify, mitigate and manage
all activities related to the Project and its potential impacts, including:
• impact on seabed habitat as a result of pipeline installation
• vessel safety during construction and operation of the Project
• disturbance and erosion of beach and onshore dunes
• increased bushfire risk during construction
• accidental discharge of freshwater-based fluids into the environment
• disturbance of native vegetation and native animals during construction
• disturbance of Defense and public recreational activity during construction.
Carnegie will be carrying out additional environmental monitoring and assessments during
all stages of the Project to ensure effective management is maintained.

23. Environmental & Community Impact – Part III
Greenhouse gases & energy consumption or production,
Species impacts(sensitive/threatened/endangered),
Environment benefits, Community/Economic impacts & benefits
Environmental Approvals
Carnegie referred the marine elements of the Project to the WA Environmental Protection
Authority (EPA) under Part IV of the EP Act. On 10 December 2012, the EPA announced a
determined outcome of ‘Not assessed: public advice given’ noting that “potential impacts
not significant and can be managed under Marine Environmental Management Plan and
through other government processes.”
Maritime safety approvals related to the CETO units and offshore pipeline were received
from the WA Department of Transport in August 2012.
Carnegie referred the terrestrial elements of the Project to the Department of Defense who,
on 28 November 2012, issued an Environmental Clearance Certificate for the Project.
The above represent the key environmental and maritime safety approvals required for the
Project. The PWEP will be managed through Carnegie’s Environmental Management System
to ensure compliance with the above environmental approvals and Carnegie's Environmental
Policy.
Environment & Community Impact – Part I, II and III slides
http://carnegiewave.com/files/asx-announcements/2012/121210%20Env_Summary_Sheet_Rev0.pdf
NOTE: I cite the environment report of the Carnegie PWEP project to show they have a rigorous
environment and community impact process that is similar to that of the United States.

24. Final Comments –
Sustainable Water Source through Ocean Energy
Timing is everything. I could not have provided this information with the same level of detail a
year ago and therefore with a confidence that I feel is possible now. Some of the pilots have
been moving forward almost a decade now and the first commercial projects sponsored by
other country government agencies with private partnerships are sprouting around the globe.
When considering all the variables, I am recommending in this submission the Carnegie Wave
Energy CETO technology that marries wave energy (through a unique high-water pressure
energy conversion system with off-the-shelf hydro-electric turbine technology to reduce costs)
and desalination in a compartmentalized and scalable design.
When considering the precious marine environment surrounding the City of Santa Cruz, there is
a decade or more of research with Oregon State University in new buoy designs to co-exist
with whale migration and a new polymer at SRI International that could make buoy energy
conversion 100 times more efficient and therefore possibly with a smaller buoy footprint.
Santa Cruz has a real opportunity to be one of the first to marry energy and water security with
emissions free sustainable energy and zero-emission freshwater. Water and Energy Nexus in this
case could become a real opportunity for the Santa Cruz Community. The research and
development costs in ocean energy have been accomplished through projects around the
world for the last decade. These solutions are scalable and possibly at lower costs than
projected in earlier Santa Cruz EIR and Analysis reports.

25. Update – October 2014 – Some Numbers
Communication with Tim Sawyer – Carnegie Wave Energy Project Development Officer – October 2014
http://www.carnegiewave.com/index.php?url=/board/management
Bio - Tim Sawyer, B.Sc. (Hons) Oceanography with Physical Geography - Project Development Officer
Tim has over 13 years experience in marine surveying, environmental impact assessment, management and mitigation of
environmental impacts, permitting and approvals. Tim has an in depth knowledge of offshore renewable energy development
including wave, wind and tidal stream energy.
As Project Development Officer Tim is responsible for wave energy resource definition and commercial site identification and
assessment. Tim’s role also encompasses stakeholder consultation and management of project permits and approvals.
http://www.carnegiewave.com/index.php?url=/about/directors-and-management - Management - Carnegie Wave Energy
• Santa Cruz comparable to Perth in wave energy – can pick a spot along the coast best suited – 30-70 meters deep
• Carnegie Wave Energy Solution - Configure to generate energy only or can anticipate need for possible desal (and only if
required) and then generate both energy and desal water using hydraulic system through wave energy
• Carnegie Wave Energy CETO 5 – 240 kW maximum energy – energy for 1 gigaliter water per day
• In the case of PWAP, primarily energy output (Qty 3 CETO 5 240kW/unit and small Desal pilot – 30 kW/150,000 liters/day)
• CETO 5 – maximum energy – 240 kW – energy for 1 gigaliter water/day – potable water – direct reverse osmosis.
• Capital cost - $4 million per 1 MW installed
• Energy cost - $0.25/kW in short/mid-term and in long-term (few years) - $0.12-13/kW - competitive range.
• Desal cost – pilot $4.0/kL and commercial scale - $1.5 – 2.0/kL – chemicals are the main expense.
• CETO 5 – 11 meters wide x 5 meters high – 240 kW - onshore electricity – pressurized water to onshore rotors/hydraulic sys
• CETO 6 – 16-18 meters wide x 5 meters high – 1 MW power – offshore electricity more efficient – electrical cables to shore

26. Update – October 2014 – Timelines, Install and
Financials Carnegie Wave Energy
Communication with Tim Sawyer – Carnegie Wave Energy Project Development Officer – October 2014
http://www.carnegiewave.com/index.php?url=/board/management
Bio - Tim Sawyer, B.Sc. (Hons) Oceanography with Physical Geography - Project Development Officer
• Onshore - Personnel to run electrical utility – Onshore – 4 people – maintain PWEP including desal – need to scale personnel
as utility operation scales
• Offshore – vessel to tow unit to location and personnel – 3-year maintenance cycle
• CETO 5 – testing since 2009 and moving to three CETO 6 devices – PWEP Project – Western Australia - Garden Island –
• PWEP - Garden Island location is whale migration path – CETO buoys moves with waves - limited opportunity for
entrapment as tethered tight to sea floor – Constantly monitoring shows no sound impact. Australia takes environmental
issues as seriously as the United States.
• Timeline – 4-year process typically through final engineering, location designation and approval processes.
• 2014 – pre-commercial – now – PWEP is the only commercial wave array farm (multiple units) in the world.
• 2018 – commercial readiness
• Carnegie Wave Energy – on Australian stock exchange and financials and new October 2014 investor presentation on
website.
• Carnegie Wave Energy raised $140 million - $100 million spent in last decade in R&D (CETO 1-6) and remainder in the bank.
• Wave energy evolving with about 256 designs globally – 15-20 serious projects in R&D – handful that are in pilots. Like solar
and wind – a few companies at the top tier including Carnegie Wave Energy.

27. Update – October 2014 – Carnegie Wave Energy
Technology Releases & Financial Reports
http://www.carnegiewave.com/files/asx-announcements/
2012/120921_Next%20Generation%20CETO%205%20Unit%20Design%20Release.pdf
2012 Release – CETO 5 - CETO 5 utilizes oil and gas standard “quick connect” technology that reduce unit installation time by
80% over previous CETO generations. As with the in-ocean operation of previous CETO units, all critical performance
variables will be validated during the project through the use of specialized in-ocean measurement and communications
equipment.
http://www.carnegiewave.com/files/asx-announcements/2013/130412_GMREC%20Presentation.pdf
Global Marine Renewable Energy Conference – April 11, 2013
Slide 3 - General Martin Dempsey, Chairman of the Joints Chiefs of Staff, the highest ranking military office in USA and
principal military adviser to the US President, inspecting the CETO wave power system in November 2012.
http://en.wikipedia.org/wiki/CETO
CETO 5 contains no oils, lubricants or offshore electrical components. They are built largely from existing offshore components
with a predicted subsea lifespan of more than 25 years.
http://en.wikipedia.org/wiki/CETO
Carnegie Wave Energy Annual Reports – 2014, 2013 and 2012:
http://carnegiewave.com/files/asx-announcements/2014/1014%20annual%20report%20for%20web.pdf - 2014
http://www.carnegiewave.com/files/asx-announcements/2013/130601-CarnegieAR2013-LowQuality.pdf - 2013
http://www.carnegiewave.com/files/asx-announcements/
2012/Carnegie%20Wave%20Energy%20Annual%20Report%202012.pdf - 2012

28. Update – October 2014 – BOEM and Links to
Wave Energy Resources
http://www.boem.gov/Renewable-Energy-Program/Renewable-Energy-Guide/Ocean-Wave-Energy.aspx
Federal Bureau of Ocean Energy Management (BOEM) - Ocean Wave Energy - The recoverable wave energy resource for
each US region is estimated as: West Coast of United States - 250 TWh/year
http://www.energy-without-carbon.org/Waves
Wave power in kW per meter of wave crest in various parts of the world.
http://www.energy-without-carbon.org/WaveFarms - Wave Farm Competition
http://en.wikipedia.org/wiki/Wave_power - Wave Power Systems – Companies and some Locations
http://en.wikipedia.org/wiki/Wave_power#Point_absorber_buoy – Types of Wave Energy Devices
http://www.ocean-energy-systems.org/ocean_energy/in_depth_articles/mountains_of_bluetape_/
"The Ocean Energy Systems Implementing Agreement (OES) is an intergovernmental collaboration between countries, which
operates under framework established by the International Energy Agency in Paris."
Author: Ian Boisvert was a 2011 Ian Axford Fellow in Public Policy through Fulbright New Zealand. Ian is now returned to San
Francisco, California, where he practices renewable energy and environmental law.
Part Two: United States’s Mountain Chains of Blue Tape
Ocean renewable power developers in the United States intent on deploying a pilot scale device must deal with federal and
state agencies and laws. The Federal Energy Regulatory Commission (FERC) is arguably the most important of the federal
agencies because under the Federal Power Act it has authority to regulate and license hydroelectric projects on navigable
waters.26 r pilot-scale projects.27
The three types are: preliminary permits, “Verdant Orders”, and pilot project license policy.